Elements to a Trade Set up 8: MARKET REVERSAL PROFILES. Understanding Market structure to catch a reversal. Using Fibonacci Retracement levels also to catch a turn. Am I depth Look at Nasdaq. Watch video and take notes βπΎ share and retweet.
That video shows how a market turns bearish from bullish also how the Market maker sell model was completed and a buy model happened to take form. But how do we know these things well if u ever catch yourself missing a move. U as a trader can anticipate the reversal point.
In the video shown above yesterday on Nasdaq I was not able to catch the sell as I was busy during Am session. I only came online and saw that the market had been dumping. So I tracked the sell. Started from London session low that was taken.
Next level broken broken and lost was last weeks 50% line which is a key level. But also people must understand that the weekly Line can be tested and retested it is only considered broken after 3 Attempts. We only had one attempt lower. In trading we have tested levels.
After weekly line was lost the candles move quickly to the trend direction. As the weekly line is a key level in trading. And it was a total sell off from that level. I now counted 2 levels but weekly line being lost is not counted because it is only being tested.
The second true break of structure was a low created you have to draw the lines from the wicks where sell side is and extend it to the right. You do this because the sell side taken level will be retested. This is for True trend confirmation. If we are still bearish.
Remember this a level Lost is a level Held. That is true resistance and support. Then we have a 3rd level broken. At this level we are reaching a possible reversal point. This technique is known as 3 drives pattern mentioned by ICT on many occasions.
If we are to go long now a break of structure must occur and we look for it at this point no fibs are out to find true targets and reversal levels.
I found a level that was lost and I waited for this level to be tested alongside the fib levels for targets
And now we can get the fibs out in the picture shown bellow Fibonacci is an accurate method to determine true structure levels being held and true targets. Nasdaq found structure ay 38.20% fib level. Itβs true target is 224% will take a while to get there but it got there.
These are the notes needed for Fibonacci true levels. Also Cue banks confluence 2.5 video at 30mins explains this concept very wells you can go on his YouTube page.
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